(a) Crane Ltd, a Cork-based company, specialises in bathroom fixtures and fittings, including sinks, baths and showers....
Question:
(a)
Crane Ltd, a Cork-based company, specialises in bathroom fixtures and fittings, including sinks, baths and showers. The company has the following transactions for the 2-month VAT period November/December 2020:
Sales: | € |
To Irish business customers (VAT registered) | 15,000 |
To Irish private customers | 30,000 |
To Spanish business customers (VAT registered) | 12,000 |
To German private customers | 8,000 |
To non-EU customers | 55,000 |
Purchases of Good for Resale: | |
From Irish suppliers (VAT registered) | 15,450 |
From EU suppliers (VAT registered) | 13,125 |
From non-EU suppliers | 11,670 |
Other: | |
Purchase of delivery van | 30,000 |
Entertaining | 1,200 |
Office stationery | 435 |
Petrol for car | 1,100 |
Repairs to delivery van (13.5%) | 1,300 |
All figures are inclusive of VAT at the standard rate of 23%, except where stated otherwise. The sale to German private customers was the only such sale in the entire year.
Required
- Calculate the VAT liability/refund of the company for November/December 2020. You should include an explanation for your VAT treatment of all sales, purchases and costs.
- State the due date for the submission of this return.
- marks)
Part (b)
Explain the VAT implications of each of the following transactions:
- An Irish start-up manufacturing company (projected turnover of €60,000 in its first year) sold goods to an Irish business customer for €10,000
- An Irish VAT registered tax adviser provides tax advice to a business in China
- An Irish fabric manufacturing company is registered for VAT and supplies goods to private customers both in Ireland and across the European Union. The company projects that it will be supplying goods of €300,000 to Irish customers and €300,000 to France.
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier